Keep your faith in clas­sic pur­chases

Classic Car Weekly (UK) - - This Week -

Iread with in­ter­est the head­line in CCW’s 5 July is­sue ‘ Traders fear clas­sic sales are cool­ing’. Speak­ing as chair­man of one of Bri­tain’s high vol­ume re­tail­ers and re­stor­ers, I don’t share those fears.

Surely the signs were all there that the global econ­omy was in for a rough ride ten years ago and those who saw a crash com­ing did very well by their ac­cu­rate pre­dic­tion of what was to come.

For­mer Prime Min­ster, David Cameron, speak­ing at the 2014 G20 Bris­bane Sum­mit said: ‘Six years on from the fi­nan­cial crash that brought the world to its knees, red warn­ing lights are once again flash­ing on the dash­board of the global econ­omy’. Since then we have had the Brexit vote and more re­cently the shock Gen­eral Elec­tion when, far from se­cur­ing the firm man­date our cur­rent Prime Min­is­ter sought, the Govern­ment ended elec­tion day with a bloody nose and fur­ther un­cer­tainty and fear came back into the fi­nan­cial sec­tor. My view is that we will en­counter eco­nomic woes that will erode the pur­chas­ing power of our money. It has al­ready hap­pened with the plum­met in GDP/Dol­lar rates fol­low­ing the Brexit vote. If an­other ad­just­ment is to come, I would rather be sit­ting with a barn full of clas­sic cars than a pa­per prom­ise to pay with a value based on ‘mar­ket con­fi­dence’.

The re­al­ity is that the clas­sic car mar­ket has for many years out­per­formed the stock mar­ket, yields on sav­ings and ev­ery other investment class. With a grow­ing mid­dle class in Asia and other mar­kets, de­mand for our won­der­ful clas­sics is greater than ever.

Our busi­ness be­gan in the teeth of the ma­jor re­ces­sion of 1991. At a time when many own­ers needed to sell, busi­ness was brisk at the new ‘re­ces­sion ad­justed’ prices. Car val­ues had fallen af­ter be­ing over­heated by spec­u­la­tive in­vestors. Now the mar­ket is very dif­fer­ent. Val­ues have risen markedly, but the gen­tle rise in val­ues has been de­mand-led.

No, it’s not a time to fear. In fact, it’s time to get the cheque book out and keep some of your pre­cious sav­ings in the garage.

Nick Szk­iler, Chair­man, Clas­sic & Sportscar (Hold­ings) Ltd.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.